Kellogg model Cheez-it crackers organized at a grocery store in Dobbs Ferry, New York, US, on Wednesday, June 22, 2022. Kellogg Co. mentioned it is going to break up into three unbiased firms, sparking a rally within the meals conglomerates shares.
Tiffany Hagler-Geard | Bloomberg | Getty Photos
Kellogg on Wednesday revealed it is going to title its snacking unit Kellanova as a part of its plan to separate into two unbiased public firms.
Kellanova, which can embrace manufacturers like Pringles and Cheez-Its, will retain the “Ok” inventory ticker at the moment utilized by the food giant. The North American cereal unit can be renamed WK Kellogg Co. The corporate mentioned that unit’s ticker can be introduced within the coming months.
Using “Kell” acknowledges the brand new firm’s connection to Kellogg, whereas the Latin phrase “nova,” which suggests new, is supposed to sign its ambition to be a world snacking powerhouse, in line with Steve Cahillane, CEO of Kellogg and future CEO of Kellanova.
The Kellogg’s title will stay on model packaging.
Kellogg mentioned it solicited worker concepts to call the 2 firms and acquired greater than 4,000 submissions. Roughly a fifth of staff who submitted names instructed a variation of founder W.Ok. Kellogg’s title for the cereal enterprise.
The spinoff, which was introduced in June, is deliberate for the tip of this 12 months. The preliminary plan additionally included the sale or separation of its plant-based enterprise, which incorporates Morningstar Farms. Nonetheless, Kellogg mentioned in February it has reversed course as customers’ and buyers’ curiosity within the class waned. As an alternative, it is going to be part of Kellanova.